NEW YORK (Reuters) – Stocks slipped on Friday as data showed the U.S. economy grew less than expected in the fourth quarter, while some disappointing earnings added pressure to the market.
Government data showed U.S. gross domestic product expanded at its fastest pace in 1-1/2 years in the fourth quarter of 2011 but fell shy of expectations. A strong rebuilding of inventories and weak spending by businesses pointed to slower growth early this year, denting recent optimism about an improving economy.
But losses were curbed as Federal Reserve statements this week and economic data kept investors alert for the possibility of another round of monetary stimulus known as quantitative easing, or QE3.
“Out of what the Fed said, you can expect some negative numbers because the Fed obviously saw what the GDP numbers are and they anticipate a slowdown,” said Sean Kraus, chief investment officer at CitizensTrust in Pasadena, California.
If the Fed does
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